Temmler Group, a German contract- manufacturer of pharmaceuticals, has drawn interest from private equity bidders as it searches for a buyer, according to people with knowledge of the situation.

The company, owned by trustees since last year, has hired Lazard Ltd. (LAZ) as an adviser to consider its options and non- binding indicative offers were submitted around the end of June, said the people, who asked not to be identified because the plans are private. Temmler has annual sales of about 170 million euros ($208 million).

The contract-manufacturing industry, fueled by the outsourcing needs of drugmakers, is populated with about 140 companies in Europe alone and a drive to bring down costs while meeting stringent regulatory standards is spurring consolidation. Temmler’s business model is built on offering manufacturing capability as well as services spanning clinical trials, logistics and distribution. Competitors include NextPharma.

A Temmler spokesman declined to comment. Lazard’s Richard Creswell declined to comment.

To contact the reporter on this story: Andrew Noel in London at anoel@bloomberg.net

To contact the editor responsible for this story: Benedikt Kammel at bkammel@bloomberg.net